Rooster Talk Episode 48 is a Simple Gold Mining Story with Mark Strizek, executive director of Tietto Minerals Ltd (ASX:TIE) (ASX:TIE)
Today's Rooster Talk is about the recent release of the DFS and the conversation is more than casual. As I have mentioned in the previous Coffee with Samso Episode 100 (our milestone episode) with Mark, my takeaway was - this is essentially a Simple Gold Mining Story.
The jury is out for Tietto Minerals Ltd (ASX:TIE) as they release the definitive feasibility study (DFS) for the Abujar Gold Project. As Mark Strizek, the executive director, puts it, "it's knocking people's socks off".
The 54% global resource upgrade from the pre-feasibility study that was released earlier is a testament to how good the Abujar Gold project is. The AISC for the first year is less than USD$900 and the next six years of production is at less than USD$1000.
This is a great conversation about what a good gold project should look like.
Watch the interview: Rooster Talk Episode 48
Chapters
00:00 Start
00:57 Mark shares the DFS story.
01:28 A very good payback period.
02:12 Lots of fat in the Gold price for Tietto.
02:52 Extremely good AISC
04:23 Orebody is not closed off.
05:03 Is new drilling going to make any difference to the DFS?
05:57 The DFS leaves no questions on the table.
06:52 There is a trend within the orebody for good grades.
08:39 What is the processing for Abujar?
10:31 A big 4M Mill.
12:40 A Great Resource for Heap Leaching.
14:16 Good Geology gives you Good Surprises.
14:42 Is a redesigned stripping ratio helping reduce costs?
16:46 A better stripping ratio is always good.
17:09 All about cost savings.
17:39 Is the upgrade on the PFS numbers expected?
18:33 The 54% question.
19:30 What does Mark think of the gold price, going forward?
21:31 What will the potential be from future drilling?
23:39 Abujar is in Elephant country.
26:47 Thoughts on ESG for Tietto.
29:28 The Key to Tietto success is savings on Drilling.
31:08 Main difference between Tietto and other near-producers is the ability to drill cheaply.
32:00 Mark's Words of Wisdom.
32:59 Conclusion
PODCAST
About Tietto Minerals
Tietto Minerals Ltd (ASX:TIE) is focused on fast-tracking the development of the Abujar Gold Project in Côte d’Ivoire, West Africa, targeting the first gold in Q4 CY2022.
Following an aggressive drilling campaign, Tietto announced an increase in its mineral resource estimate at the Abujar Project in July 2021. This included growth in gold resources to 87.5 million tonnes at 1.2 g/t gold for 3.35 million ounces, including:
- AG mineral resources total 50.3 million tonnes at 1.5 g/t for 2.45 million ounces (+7% oz Au); and
- APG mineral resources total 36.7 million tonnes at 0.7 g/t for 870,000 ounces (+24% oz Au).
These results boost the Abujar indicated resources by 49% to 43.4 million tonnes at 1.3 g/t for 1.85 million ounces of contained gold, representing more than 55% of the Abujar project ounces.
Tietto has a 50,000-metre diamond drilling program underway targeting de-risk and resource growth using its fleet of six diamond drill rigs. The program includes:
- Infill drilling at AG targeting the first two years of production;
- Resource growth from drill testing of targets located within a 10 kilometres radius of the proposed AG mill; and
- Drill testing high priority regional targets.
Tietto is rapidly advancing Abujar's development with an early work program including front end engineering and design (FEED) and site and camp construction underway.
In April 2021, Tietto completed the Abujar Gold Project Pre-Feasibility Study (PFS) for an open-pit 3.5 million tonnes per annum operation. Highlights included:
- Forecast annual production of 200,000 ounces gold in first year of production; more than 168,000 ounces per annum over the first six years of project;
- Maiden open pit probable reserves of 15.7 million tonnes ROM at 1.7 g/t for 860,000 ounces (over 65% conversion of indicated resources);
- LOM mining inventory inclusive of ore reserves of 9 million tonnes ROM at 1.5 g/t for 1.1 million ounces at Average All‐in Sustaining Costs (AISC) of $839/oz;
- 2.8 year payback from the commencement of construction on $230 million CAPEX (including pre‐production mining and contingency); and
- Strong economics ‐ pre‐tax NPV (5%) of $363 million, IRR 53% and post‐tax NPV (5%) of $266 million, IRR 42% based on an average gold price of US$1506/oz.
Tietto expects to deliver a definitive feasibility study (DFS) for Abujar in Q3 CY2021.
Abujar Gold Project
Côte d’Ivoire, West Africa
The Abujar Gold Project is located approximately 30 kilometres from the major regional city of Daloa in central-western Côte d’Ivoire. It is close to excellent regional and local infrastructure to facilitate exploration and development being only 15 kilometres from the nearest tarred road and grid power. The Abujar Gold Project is comprised of three contiguous tenements with a total land area of 1,114 square kilometres, of which less than 10% has been explored. It features an NNE‐orientated gold corridor over 70 kilometres striking across three tenements.
In April 2021, Tietto announced the results of the Abujar Gold Project PFS for an open-pit 3.5Mtpa operation. For full details see: April 22, 2021 - Tietto secures SAG Mill for 3.02Moz Abujar Gold Project; and May 3, 2021 - Tietto rapidly advancing Abujar Gold Mine development
Full details of the increased mineral resource estimate are available in the ASX announcement dated July 12, 2021.
Plans for 2021
A 50,000m diamond drilling campaign is underway targeting de-risk and resource growth using Tietto’s fleet of six diamond drill rigs.
The campaign includes:
- Infill drilling at AG targeting the first two years of production;
- Resource growth from drill testing of targets located within a 10-kilometre radius of proposed AG mill; and
- Drill testing high priority regional targets.
Tietto is rapidly advancing Abujar development with an early work program including front end engineering and design (FEED), and site and camp construction underway.
Tietto is targeting the first gold at Abujar in Q4 CY2022.
About Mark Strizek
Executive director
Mark Strizek has more than 20 years of experience in gold exploration, resource development and operations of open pit and underground projects ranging from the Kalgoorlie super pit to high-grade projects such as Frogs Leg in the Eastern Goldfields, Western Australia. Prior to joining ASX-listed Vital Metals Limited (ASX:VML) as chief executive officer, Mr Strizek was involved in the project development of mineral, coal and petroleum resources in both Australia and Papua New Guinea.
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